Credit card processing and merchant services in Albuquerque, NM
Albuquerque businesses owe gross receipts tax on services as well as goods, need a city license for every location, and add a 5% lodgers' tax and 1% hospitality fee on rooms.
The Census Bureau put Albuquerque's population at 556,588 in July 2025. Every business in the city deals with New Mexico's gross receipts tax, which the state imposes on the seller rather than the buyer. It reaches services as well as goods, so an electrician or a hair salon can owe it just as a store does.
The rate follows the delivery. Sell across your Albuquerque counter and you use the city's location code and rate; deliver goods, or the product of your service, to a customer outside city limits and you generally use the rate there, with exceptions such as professional services. Since July 1, 2025, rates change only in July, so pull the Taxation and Revenue Department's schedule each summer and update your terminals, your online checkout and your invoice templates together. If you pass the tax on, it has to appear on the invoice as its own line.
The city also changed its own paperwork. On January 1, 2025, Albuquerque began moving from business registration to a business license program. Each outlet, branch or location inside city limits needs its own license before it opens, at $36.75 a year plus a Fire Marshal inspection fee based on the size of the business. Three storefronts means three licenses.
Hotels and other lodging businesses have two more charges on room revenue: the city's 5% lodgers' tax and a 1% hospitality fee. On a $120 night, that's $7.20.
We found no New Mexico statute on card surcharges, so Visa's and Mastercard's caps are the working limits. Our New Mexico page explains them, and a free statement review shows what your card processing costs today.
Rules that matter in Albuquerque
A business license for each location
As of January 1, 2025, the City of Albuquerque began moving from a business registration system to a business license program. Every business must apply for a license and pay the fee for each outlet, branch, location or place of business within city limits before it starts doing business there.
The annual license fee is $36.75, plus a Fire Marshal fire and life safety inspection fee based on the size of the business.
Sources: City of Albuquerque, Business license information; City of Albuquerque, Business license FAQs
Lodgers' tax and hospitality fee
The city collects a 5% lodgers' tax and a 1% hospitality fee on room revenue. If you rent rooms in Albuquerque, set up both in your booking and payment systems alongside gross receipts tax.
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Common questions
Do I need a separate Albuquerque business license for each store?
Yes. Under the city's business license program, which began replacing business registration on January 1, 2025, every outlet, branch or location inside city limits needs its own license before it opens. Each one costs $36.75 a year, plus a Fire Marshal fire and life safety inspection fee that depends on the size of the business.
What does an Albuquerque hotel collect besides gross receipts tax?
The city's 5% lodgers' tax and a 1% hospitality fee, both on room revenue. On a $150 room night those come to $9.00 together. Set both up in your booking system and card terminals so every folio shows them correctly.
When should an Albuquerque business update its gross receipts tax rate?
Every July. Since July 1, 2025, New Mexico rates change only in July, except in special situations such as a natural disaster, when a county or municipality can change its rate in January. Check the Taxation and Revenue Department's schedule for the city's location code, and for any locations you deliver to outside city limits.
Do Albuquerque service businesses owe gross receipts tax?
Generally yes. New Mexico's gross receipts tax applies to businesses that perform services in the state, not only those that sell or lease property. If you pass it on to clients, state it separately on the invoice. Professional services are an exception to the usual delivery-location rule, and the department's FYI-200 publication explains which rate to use.
How can an Albuquerque contractor take card payments at the job?
With mobile payments: tap to pay on a phone or a small card reader. Set the reader's tax to the gross receipts rate for the location where the product of your service is delivered, and send larger balances as invoices or payment links from a virtual terminal. Our contractor payments guide covers deposits and progress payments.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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